Tervita's Acquisition of Complete Environmental Inc. (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Tervita's Acquisition of Complete Environmental Inc. (A)
On January 3, 2011, the Canadian Competition Bureau was reviewing a recent business merger. CCS Corporation Inc. (Tervita) had acquired Complete Environmental Inc. (Complete). Prior to its acquisition by Tervita, Complete had received regulatory approval to operate a secure landfill site in Northeastern British Columbia (NEBC). However, a complaint about the purchase was filed by SECURE Energy Services Inc. (SECURE), one of Tervita's competitors. The complaint claimed that the price Tervita paid for Complete was well above fair market value, and that the purchase would eliminate a competitor in the NEBC market. At the time, only two secure landfills operated in NEBC. Both were owned by Tervita, which provided a wide-range of waste management, recovery, and disposal services to the North American oil and gas industry. The Canadian Competition Bureau had to evaluate the economics underlying Tervita's decision to pay a premium price for Complete. It also needed to determine whether the acquisition violated the Competition Act, or whether the complaint was merely a frivolous case of "sour grapes" stemming from SECURE's own failure to acquire Complete.
Swot Analysis of "Tervita's Acquisition of Complete Environmental Inc. (A)" written by Brandon Schaufele, Ken Mark includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Tervita Complete facing as an external strategic factors. Some of the topics covered in Tervita's Acquisition of Complete Environmental Inc. (A) case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Tervita's Acquisition of Complete Environmental Inc. (A) casestudy better are - – supply chains are disrupted by pandemic , technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings, increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Tervita's Acquisition of Complete Environmental Inc. (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Tervita's Acquisition of Complete Environmental Inc. (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tervita Complete, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tervita Complete operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Tervita's Acquisition of Complete Environmental Inc. (A) can be done for the following purposes –
1. Strategic planning using facts provided in Tervita's Acquisition of Complete Environmental Inc. (A) case study
2. Improving business portfolio management of Tervita Complete
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Tervita Complete
Strengths Tervita's Acquisition of Complete Environmental Inc. (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tervita Complete in Tervita's Acquisition of Complete Environmental Inc. (A) Harvard Business Review case study are -
Successful track record of launching new products
– Tervita Complete has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Tervita Complete has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Sustainable margins compare to other players in Strategy & Execution industry
– Tervita's Acquisition of Complete Environmental Inc. (A) firm has clearly differentiated products in the market place. This has enabled Tervita Complete to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Tervita Complete to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Tervita Complete in the sector have low bargaining power. Tervita's Acquisition of Complete Environmental Inc. (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Tervita Complete to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Tervita's Acquisition of Complete Environmental Inc. (A) Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Tervita Complete digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Tervita Complete has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
High brand equity
– Tervita Complete has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Tervita Complete to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Tervita Complete is one of the leading recruiters in the industry. Managers in the Tervita's Acquisition of Complete Environmental Inc. (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Tervita Complete is present in almost all the verticals within the industry. This has provided firm in Tervita's Acquisition of Complete Environmental Inc. (A) case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Training and development
– Tervita Complete has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Tervita's Acquisition of Complete Environmental Inc. (A) Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Superior customer experience
– The customer experience strategy of Tervita Complete in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Tervita Complete has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Learning organization
- Tervita Complete is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Tervita Complete is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Tervita's Acquisition of Complete Environmental Inc. (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Tervita's Acquisition of Complete Environmental Inc. (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Tervita's Acquisition of Complete Environmental Inc. (A) are -
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Tervita Complete supply chain. Even after few cautionary changes mentioned in the HBR case study - Tervita's Acquisition of Complete Environmental Inc. (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Tervita Complete vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Tervita Complete has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Increasing silos among functional specialists
– The organizational structure of Tervita Complete is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Tervita Complete needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Tervita Complete to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Tervita's Acquisition of Complete Environmental Inc. (A) that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Tervita's Acquisition of Complete Environmental Inc. (A) can leverage the sales team experience to cultivate customer relationships as Tervita Complete is planning to shift buying processes online.
High cash cycle compare to competitors
Tervita Complete has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
High bargaining power of channel partners
– Because of the regulatory requirements, Brandon Schaufele, Ken Mark suggests that, Tervita Complete is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Tervita Complete is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Tervita's Acquisition of Complete Environmental Inc. (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Tervita Complete has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Slow decision making process
– As mentioned earlier in the report, Tervita Complete has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Tervita Complete even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Tervita's Acquisition of Complete Environmental Inc. (A), it seems that the employees of Tervita Complete don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Workers concerns about automation
– As automation is fast increasing in the segment, Tervita Complete needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Opportunities Tervita's Acquisition of Complete Environmental Inc. (A) | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Tervita's Acquisition of Complete Environmental Inc. (A) are -
Developing new processes and practices
– Tervita Complete can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Creating value in data economy
– The success of analytics program of Tervita Complete has opened avenues for new revenue streams for the organization in the industry. This can help Tervita Complete to build a more holistic ecosystem as suggested in the Tervita's Acquisition of Complete Environmental Inc. (A) case study. Tervita Complete can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Tervita Complete can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Tervita Complete can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Buying journey improvements
– Tervita Complete can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Tervita's Acquisition of Complete Environmental Inc. (A) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Building a culture of innovation
– managers at Tervita Complete can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Tervita Complete in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Tervita Complete can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Tervita Complete is facing challenges because of the dominance of functional experts in the organization. Tervita's Acquisition of Complete Environmental Inc. (A) case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Loyalty marketing
– Tervita Complete has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Tervita Complete can use these opportunities to build new business models that can help the communities that Tervita Complete operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Better consumer reach
– The expansion of the 5G network will help Tervita Complete to increase its market reach. Tervita Complete will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Tervita Complete to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Threats Tervita's Acquisition of Complete Environmental Inc. (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Tervita's Acquisition of Complete Environmental Inc. (A) are -
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Tervita Complete in the Strategy & Execution sector and impact the bottomline of the organization.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Tervita's Acquisition of Complete Environmental Inc. (A), Tervita Complete may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Tervita Complete will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Tervita Complete.
Environmental challenges
– Tervita Complete needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Tervita Complete can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Tervita Complete needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Tervita Complete in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
High dependence on third party suppliers
– Tervita Complete high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Tervita Complete can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Tervita's Acquisition of Complete Environmental Inc. (A) .
Increasing wage structure of Tervita Complete
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Tervita Complete.
Regulatory challenges
– Tervita Complete needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Tervita Complete business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Tervita's Acquisition of Complete Environmental Inc. (A) Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Tervita's Acquisition of Complete Environmental Inc. (A) needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Tervita's Acquisition of Complete Environmental Inc. (A) is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Tervita's Acquisition of Complete Environmental Inc. (A) is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Tervita's Acquisition of Complete Environmental Inc. (A) is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Tervita Complete needs to make to build a sustainable competitive advantage.